Shares Whose Prices Are Expected to Remain Stable, or Even

question 2

Multiple Choice

Shares whose prices are expected to remain stable, or even prosper, when economic activity is slowing down are known as

• A) reversible shares.
• B) cyclical shares.
• C) speculative shares.
• D) defensive shares.

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Definitions:

Tax Increase

The raising of taxes by a government, which can affect individuals, businesses, and the economy by influencing spending, saving, and investment behaviors.

Social Security Tax

Taxes collected to fund the Social Security program, which provides benefits to retirees, disabled individuals, and survivors of deceased workers.

Regressive

Describes a process or policy that disproportionately affects those with lower incomes or status, often applied to taxation.

Cap Income Level

A ceiling or maximum limit set on income, beyond which additional income may be taxed at a higher rate or may not be eligible for certain benefits.